Kaya 959 Reporter
Buying your first car can be very challenging, especially if you don’t have the right advice.
If you don’t know any better, scammers take advantage of you. So before you dash over to the car dealership, it’s vital that you devise a strategy.
The following advice will help you get the car you desire at a price you can afford, especially if you are a first-time buyer.
Know Your Budget
An accurate assessment of your monthly expenditure is very important, this will help you understand what your price range will be for your new car. Experts suggest that you keep your car payment below 10% of your monthly take-home pay. This is very important as your monthly payment isn’t the only factor to take into account when budgeting for a car.
Do Your Research
Making a car purchase should be a well thought out decision. You need to do as much research as possible on the various models, car dealerships, features. Think of all scenarios.
Will the car be driving to the rural areas? What will the car be used for? Is it fuel efficient? How fast does it go? Has it been in an accident? How many owners has it had? Does it come with a service plan?
Make sure you ask as many questions as possible.
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Improve Your Credit Score
Knowing your credit score before applying for a loan will help you determine which loan terms you’re likely to qualify for. Begin by obtaining a copy of your credit report and ensuring that it is accurate. Then have a look at your credit score.
Save some money for a down payment
Most lenders prefer to see a down payment of at least 20% of the car’s price if you’re taking out a loan to buy it. (A 10% down payment is usually sufficient when purchasing a used car from a dealership.)
A 20% down payment makes sense for a variety of reasons: Because new cars lose a significant amount of value in the first year of ownership, a 20% down payment ensures that you never owe more than the car is worth. The more money you put down, the lower the loan you’ll need.
Make sure you read the fine print
This is very important especially if you are a first-time buyer, many people have gotten scammed or got a raw deal because of a bad contract.
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